Committee approves HEA items authorizing InsightSafe funds, asks CAO for demobilization plan before council vote

The Homeless Strategy Committee on Feb. 12 approved a CAO report that requests additional appropriations and contract authority for the city's Inside Safe motel program and related support services, and it amended the report to require the CAO and mayor's office to include a detailed fiscal and operational plan for city homelessness facilities, including potential demobilization options, in the next HEA filing.

Pedro Torres of the City Administrative Officer's office summarized the HEA (the city's Homeless Emergency Account) and the requested transfers. "Since the beginning of the fiscal year through December 31, '40 '3 million has been expended from the HEA," Torres said, and he outlined program costs, motel invoices and service provider reimbursements. The report requested a transfer of roughly $46.1 million from InsightSafe reserves for a combination of booking/occupancy costs, contract authority, and program advances.

Committee members expressed concern about the program's high nightly costs and the portion of vacant or non‑Alliance‑eligible motel rooms in the portfolio. Dr. Joshua O'Ganefer (Deputy Mayor for Homelessness and Community Health) told the committee that the mayor's office has been renegotiating hotel/motel contracts; he said renegotiated occupancy agreements that are Alliance‑eligible have reduced the average cost per slot and that further savings are being pursued.

The committee approved two formal actions recorded in the meeting: to note and file item 5 (the HEA status report) and to amend and approve item 6 (the CAO's third HEA report) as amended to require the CAO to provide a fiscal/operational plan on Inside Safe and other city homelessness facilities. The roll call for the HEA action recorded three ayes: Council member Grama, Council member Gerardo and Council member Blumenfield; Council members Price and Nazarian were absent.

Votes at a glance (committee): - Item 5: Note and file HEA status report (noted and filed). - Item 6: Approve CAO's 3rd HEA report as amended; transfer authority and advances for Inside Safe and related site and service costs (approved, 3 ayes, 2 absent).

Committee members requested several clarifications in the HEA package, including: the number of InsightSafe rooms that will qualify as Alliance‑eligible occupancy agreements (the CAO's office reported a total of 13 hotels/423 beds that would count toward the Alliance requirements if the HEA is approved), whether reimbursements to the city would be retroactive (the CAO stated reimbursement becomes effective on the date a room is reported to the Alliance court, not retroactive to the hotel's opening date), and the projected operational timing for a Metro lot conversion for RV storage.

The committee added a written amendment instructing the CAO and mayor's office to include, in the next HEA report, "a detailed fiscal and operational plan for city homelessness facilities, including Inside Safe, and any potential demobilization given the financial constraints the city is facing." CAO staff agreed to work with the mayor's office and return with the requested plan prior to the HEA being considered by full council.

Ending: Committee members said they support Inside Safe's role in encampment resolution but want an operational plan that balances cost, Alliance eligibility and continuity of services before the council votes to appropriate additional funds.